Streamlined production processes – cooperation and integration

Sitting on too much inventory is not cost-effective. At the same time, they want to avoid at all costs a situation where material shortages lead to production stoppages and missed deliveries.

The goal is to have a sufficiently large stock so that production runs smoothly all the time. This also applies to the finished product to be shipped - if the demand is greater than what has been produced, there is the risk of lost business. An even flow in and even flow out is the most effective. Companies that are able to continuously match data from demand and sales with data from the production line, inventory and delivery have huge competitive advantages

Most industrial companies work closely with subcontractors and customers, and often use carefully specified configurations in the communication between the parties. On the production line, such collaboration can be complicated, especially if there are several different configurations to be taken into account. The more effective the collaboration is with subcontractors and customers, the more efficient the production will be.

Cooperation requires system cooperation

The industrial companies' various production systems must be integrated with both subcontractors' and buyers' systems in order for logistics and stock to be as efficient as possible. When the inventory balance reaches a certain level, the subcontractor knows that it is time to send new material and when the product is produced, the logistics company takes over and collects it from the end customer. Integration between different cooperating systems in the production line is crucial to create efficiency in the production process. If a change - configuration - is made, a direct adjustment takes place in all stages of production.